Also in this playlist...
This transcript is automatically generated
And they could be.
Many big ones to overcome ahead to help break it all down as much partners' senior analyst Marten -- Joining me now I'm Martin I'm glad to have you on today because I was personally intrigued -- and in the filing that tell you a little bit about.
How exciting my life is but there are a lot of juicy tidbits and -- but I wanna know what you found to be the -- on in your opinion.
Yeah you know actually the S1 filing because there have been so much talk about it and we all -- you know make and I think fairly good guesses that wasn't.
I would say a lot of surprises I think that few things that stood out though were.
The company is extremely profitable we kind of knew that but even more so other operating margin -- ten to 15%.
Above where Google went out initially on their IPO where they've kind of sustained so even better than that.
-- one upside surprise that I was a little surprise wasn't and there are all so far is mobile advertising you know what we -- mobile we mean Smartphones.
Iphones android phones tablets ipads and so forth FaceBook hasn't recognized any of that revenue yet and yet 50% of the people.
Using FaceBook logging in are actually on some sort of mobile device -- I think that's a lot of upside in that one negative you know got tired -- one negative go ahead.
The other one negative and I think people really need to kind of take into account over the next couple of months before the IPO.
Is that the growth rate of users here in the US is already down to a mid teens on a number two about a 160 million -- of the year.
That's still a very good number not not to take anything away from it but it does put more.
Focus and pressure on getting user engagement -- so you can have a user but -- never -- -- -- gonna attract advertisers and that's that's the challenge going forward.
You -- basically other risk factor is that I saw myself.
On the head to the issue of mobile and monetizing mobile.
Growth where's it going to get the growth let me ask you I mean you talked about that the user base in the United States slowing down.
Leaving growths -- really happen on global -- is.
How can -- grow and have this rate of growth continue if China is not part of the equation.
-- -- a big challenge obviously the numbers are huge there and actually when you look beyond the United States and parts of Western Europe what the UK.
Outside of China -- the advertising market as we know it.
Here domestically is very under under developed so you know it's great to have business in Brazil India Indonesia.
Egypt even which is in their top ten growth markets.
But you don't have an advertising -- -- very established so going to -- charges that are very used to advertising on TV and in print.
Which is well established -- here in new you know fertile ground here with that that group so.
International's great to be growing users and eventually you'll get more engagement but I think the advertising market there's going to be slower to develop.
Certainly that is sorry established here in the US.
Eight in advertising -- -- -- we learns through the S1 filing that -- FaceBook is an advertising company through and through with about 80% 85% of its revenues being driven by ad based revenue.
That president only -- Google Yahoo! Microsoft.
And other is is there room for FaceBook in this universe or is it trying to plane an entirely new universe it and it's creating as it goes along.
Well at some are creating a new application within an established online ad market.
Again if you go back to when Google went public.
Most big advertisers Coke Nike Procter & Gamble all -- household names really didn't understand how to advertise and -- get a return on their investment.
Now that's very well established school when they went public was 98% advertising they're still about 8590%.
With FaceBook it's a new form of targeting the user.
Based on what their liking what they're posting what they're commenting on so.
You know -- in an ideal world they -- grow and everybody -- along with them I think the reality is they take some share I think so far.
The last six months in particular Yahoo! has been the main.
One that's been and it negative situation in terms of -- demand so far doesn't affect the Google but that'll be one of the interest things got a book.
You know bells going yeah eventually they will have to go head to head Martin icon and of -- partners you for being on the -- today.
Filter by section